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Red Dog Mine

Red Dog Mine is an open-pit zinc and lead mine in the De Long Mountains of Alaska's Northwest Arctic Borough. Teck Resources operates it under a royalty agreement with NANA Regional Corporation, trucking ore to port near Kivalina.

Cover image for article: State energy board votes on nearly $5 million solar loan for Red Dog Mine

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State energy board votes on nearly $5 million solar loan for Red Dog Mine

by Cale Green · draft by Walter AlaskaNews(1w ago)
2 min readNorthwest Arctic Borough, Alaska

The Alaska Energy Authority board votes Thursday on a state loan of nearly $5 million for a solar and battery project at Red Dog Mine, after the agency's loan committee unanimously approved it and staff recommended the board do the same.

The loan would cover part of the roughly $35 million project, an 8.8-megawatt solar array and battery at the zinc mine in the Northwest Arctic Borough. Tugliq Red Dog1 LLC, a subsidiary of Canadian company Tugliq Energy Corp., would own it and sell all of its power to mine operator Teck Alaska. Those sales would repay the loan, according to the loan memo in the board packet.

The deal isn't done even if the board approves it. Before the loan can close, Tugliq has to line up the rest of the project's money, formally sign its power contract with Teck and get its parent company to guarantee the loan.

Red Dog runs on diesel, and in summer Teck's generators have to cut power to other parts of the mine so they can supply the mill, Teck told the state. Agency staff wrote that the solar project would give Teck room to ease those cuts, burn less diesel and lower workers' exposure to airborne particulates.

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About Red Dog Mine

Red Dog Mine is an open-pit zinc and lead mine in the De Long Mountains of the Northwest Arctic Borough. Teck Resources operates it under a royalty agreement with NANA Regional Corporation, and ore is trucked along a haul road to a port near Kivalina.

The mine is one of the world's richest zinc deposits, and the central question about it is how long it can keep running as its main pit nears depletion. Other recurring subjects are its wastewater permits and the effect of thawing permafrost on water management, spills into Red Dog Creek, its reliance on diesel for power, and changes in its corporate ownership.

Red Dog's royalties flow to NANA Regional Corporation, and the mine is the model often cited when other Native corporations weigh proposed mines such as Donlin. The state development bank AIDEA takes up the mine alongside other large projects such as the Ambler Road.